Still Sitting in Cash? Here's How Much $10,000 Could Cost You Over the Next 10 Years.
Cash can be attractive in the near term. It usually ends up being a drag on the portfolio in the long term.
Overview
Over the past three years, cash has actually been a reasonable place to keep your money. The iShares 0-3 Month Treasury Bond ETF, for example, offers a 3.6% yield with minimal share price volatility and no credit risk.
For your near-term spending and portfolio cash needs, it's a great way to earn a solid income while sitting on the sidelines.
Details
The problem comes when that money sits in cash for too long. What can be a nice risk/reward trade-off in the near term can be damaging to returns in the long term.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.